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BCD Travel Research and Intelligence What you need to know: Airline operations: Europe June 17, 2020 As demand declined and governments around the world restricted travel, airlines adjusted their operations and, in some cases, suspended all services. As restrictions ease, airlines are rebuilding their operations. This report summarizes what airlines in Europe are doing and planning. Major airline groups Airline Action and plans Air France-KLM Restoring services, with 40% of normal capacity across 80% of its pre-COVID-19 network operating by August IAG 90% cut in capacity in April and May. BA’s London City and Gatwick operations grounded. IAG planning for resumption of 50% of capacity in July KLM Intercontinental network scaled back to 13 destinations. Daily flights to eight European destinations resumed on May 4 Lufthansa Group Capacity across member airlines cut by 95% until May 31. Ramping up domestic and international schedule during June. Service restored to 90% of short-haul and 70% of long-haul destinations by September. Air France restoring 80% of network by August From March 16, Air France and KLM began implementing capacity cuts of between 70% and 90%, which the two airlines scheduled to last for two months. Air France scaled back its scheduled operations, offering flights from Paris at reduced frequencies to the following destinations:1 • Domestic – Marseille, Nice, Toulouse • Overseas Départements – Cayenne, Fort-de-France, Pointe-à-Pitre, Saint-Denis de la Réunion • Europe – Amsterdam, Athens, Barcelona, Berlin, Dublin, Edinburgh, Frankfurt, Geneva, Lisbon, London, Madrid, Munich, Stockholm, Zurich • Africa – Abidjan, Cotonou, Dakar • Asia – Tokyo • North America – Los Angeles, Mexico City, Montreal, New York • South America – Rio de Janeiro, São Paulo During June, Air France will operate 20% of its normal schedule and will gradually ramp up its flying program. By August, it aims to be operating 40% of its normal capacity across 80% of its network. The airline is prioritizing its domestic network, before resuming a large part of its long-haul services. In July and August, Air France will resume domestic flights from Paris to 18 destinations. It will restart 10 routes to French overseas territories, including Reunion and French Polynesia, as well as to Caribbean destinations, such as Cuba and Santo Domingo. 1 Air France, April 30, 2020 COVID 19 – Airline operations - Europe| June 17, 2020 | Page 1 BCD Travel Research and Intelligence Air France flights will also return to more than 60 European cities during July and August. It will also restart flights to three Middle Eastern destinations, including Dubai, six in Africa, five in North America, five in Central and South America, and nine cities in Asia, including Bangkok, Delhi, Singapore and Tokyo IAG cutting April and May capacity by 90% IAG, the parent company of British Airways, Iberia, Aer Lingus, Level and Vueling, initially planned to cut capacity by at least 75% during April and May.2 IAG chairman Willie Walsh believes underlying demand would probably justify a less significant reduction in capacity, but government travel restrictions mean the cuts must be this severe. It is grounding surplus aircraft and is considering accelerating older aircraft retirements, including Boeing 747-400s and Airbus A340-600s. Both aircraft sub-fleets have been fully depreciated. British Airways worked with the U.K. government’s Foreign & Commonwealth Office (FCO) to continue flying where travel restrictions allow.3 With the closure of London City Airport from March 26, British Airways’ remaining services from the facility have been grounded until the end of April.4 BA’s subsidiary BA CityFlyer had been the airport’s largest operator, operating 25 routes and accounting for 53% of all departures. From the end of March, British Airways also suspended all remaining scheduled flights from London Gatwick airport, from where it had previously flown to 75 destinations. It continues to operate a limited schedule from London Heathrow.5 With British Airways (BA) scaling back its operations, IAG has raised its capacity cuts for April and May from 75% to 90%. From April 8, these cuts included BA’s services to from London to Japan. The airline suspended until the end of April double-daily services to Tokyo Haneda and four-times-weekly services to Osaka, after the Japanese government banned U.K. and most European passport holders from entering the country. IAG is planning a “meaningful” return to service in July, with passenger capacity at 50% of 2019 levels. This plan remains highly uncertain and depends on the easing of lockdowns and travel restrictions. KLM resuming short-haul services From March 29 until May 3, KLM had planned to fly to 25 intercontinental and 32 European destinations, although at much reduced frequencies. It expected to operate around 10% of the normal number of flights during this period. As travel restrictions evolved, KLM continued to scale down its European network. By May 3, KLM was also operating passenger flights to just 13 intercontinental destinations:6 • Asia: Bangkok, Osaka, Seoul, Singapore, Tokyo Narita • Latin America: Curaçao and São Paulo • Americas: Atlanta, Chicago, Los Angeles, Mexico City, New York JFK, Toronto 2 IAG, March 16, 2020 3 British Airways, March 25, 2020 4 International Flight Network, March 26, 2020 5 The Guardian, March 31, 2020 6 KLM, April 28, 2020 COVID 19 – Airline operations - Europe| June 17, 2020 | Page 2 BCD Travel Research and Intelligence From May 4, KLM resumed regional jet-operated daily services from Amsterdam to eight European destinations: Barcelona, Budapest, Helsinki, Madrid, Milan, Prague, Rome and Warsaw. 7 The airline plans to gradually reopen more routes, subject to measures being taken by authorities at the destinations, to eventually rebuild its schedule to 15% of its pre-COVID-19 level. The airline has made the wearing of face masks compulsory during boarding and on all flights across its entire network from May 11 until at least August 31, 2020. Passengers are responsible for providing their own face masks. Lufthansa Group restoring most of network by September On March 19, Lufthansa Group announced a 95% reduction in capacity across member airlines. Air Dolomiti, Austrian Airlines and Brussels Airlines all entirely suspended their operations. Lufthansa discontinued long-haul flying from Munich, while maintaining limited long-haul services from Frankfurt. Its basic long-haul service until May 3 comprised: three weekly services to Newark, Chicago, Montreal, Sao Paulo, Bangkok and Tokyo.8 It also continued to offer approximately 50 daily connections from its Frankfurt and Munich hubs to key cities in Germany and Europe. While Lufthansa extended its reduced schedule by two weeks to May 31, it restored service to more destinations. From May 18, Lufthansa doubled domestic flights from Munich. It also added Athens, Gothenburg and Porto to the list of international destinations served from Frankfurt. Lufthansa ramped up its schedule during June.9 Together with Eurowings and SWISS, Lufthansa aims to operate 1,800 weekly frequencies to 106 German and European destinations and over 20 long-haul destinations. In the first half of June Lufthansa is resuming service to 19 short haul destinations: • Frankfurt: Hannover, Mallorca, Sofia, Prague, Billund, Nice, Manchester, Budapest, Dublin, Riga, Krakow, Bucharest and Kiev • Munich: Münster/Osnabrück, Sylt, Rostock, Vienna, Zurich, Brussels and Mallorca More long-haul routes will join Lufthansa’s existing offering of flights to Bangkok, Chicago, Newark, Sao Paulo and Tokyo: • Frankfurt: Abuja, Bahrain, Dubai, Johannesburg, Mexico City, Mumbai, Port Harcourt, Riyadh, Tel Aviv, Toronto • Munich: Chicago, Los Angeles, Tel Aviv By September, Lufthansa plans to offer 90% of its originally planned short- and medium-haul destinations and 70% of its long-haul destinations.10 It will operate 1,800 weekly short- and medium-haul connections. Lufthansa will serve 102 destinations and 88 from Munich. It will also fly 100 times a week to destinations in North America, 90 per week to Asia, more than 20 to the Middle East, and more than 25 to Africa. 7 KLM, May 4, 2020 8 Breaking Travel News, April 3, 2020 9 Lufthansa, May 14, 2020 10 Lufthansa, June 4, 2020 COVID 19 – Airline operations - Europe| June 17, 2020 | Page 3 BCD Travel Research and Intelligence Medium airlines Airline Action and plans Aegean Airlines Rebuilding domestic services from May 18 and international from May 31 Aeroflot Most international services suspended until April 23 or 30 Air Serbia All flights suspended until April 30 Alitalia Resuming some domestic and international services in June Austrian Airlines Mainly short-haul services to resume from June 15 AZAL Airline grounded until May 31 Brussels Airlines Resuming reduced schedule from June 15, with 59 routes operated by August Finnair Planning to restart European and Asian flights from July 1 Icelandair During June and July, expanding current network of ten short-haul and a single long- haul route SAS Resuming 23 international routes during June Swiss Operating minimized schedule. Resuming short- and long-haul services during June TAP Air Portugal Resuming limited flights from June 1, targeting 20% of normal schedule by July Virgin Atlantic Resuming services to five destinations from July 20 Aegean rebuilds schedule To comply with travel restrictions imposed by its home country, the European Union and other states, Greek carrier Aegean Airlines suspended all international